Download - Tea bag market & Trends in India 2010
TEA BAG GROWTH & TRENDS – 2010FAITTA – 28th Aug, 2010 New Delhi
SACHEN VERMASenior Vice President Marketing – JV Gokal & Co. Pvt Ltd
MARKETERS UNCERTAINTY
• IN INDIA TEA BAG IS A VERY SMALL CATEGORY, DOES IT MAKES SENSE TO ENTER IN IT AT ALL ?
• WHAT IS SIZE OF THE CATEGORY AND HOW IT IS CHANGING ?
• WHAT ARE THE OVERALL TRENDS IN THE MARKETPLACE IN TERMS OF SEGMENTS, PACK SIZES & FLAVOURS ?
• WHICH ARE THE NEW MARKETS TO ENTER ?
• SHOULD I BE LOOKING AT SOME NEW DISTRIBUTION CHANNELS, & INNOVATIVE PROMOTION STRATEGIES ?
BRAND PRODUCT CATEGORY
HOUSEHOLDS IN MILLION
GHARI WASHING POWDER 132FAIR & LOVELY SKIN CREAM 116WHEEL WASHING POWDER 110COLGATE TOOTHPASTE 106PARLE G BISCUITS 92PARACHUTE COCUNUT OIL 88LIFEBUOY SOAP 87HALDIRAM SALTY SNACKS 86TATA TEA PACKAGED TEA 25
BRAND REACH IN HOUSEHOLDS AC NIELSEN 2009 REPORT
BRANDED TEA - PENETRATION
State No. of Household
(in millions)
Branded Tea Penetration %
Delhi 2.6 m 91%
Ahmedabad 1.0 m 90%
Bangalore 1.4 m 69%
Chennai 1.4 m 72%
Kolkata 2.9 m 20%
Mumbai 3.7 m 72%
Hyderabad 1.2 m 59%
Pune 0.9 m 64%
Major Branded players in the Indian market
350 m kg Packaged tea Market dominated by HUL & Tata
Sizeable Gap between the two Market leaders with a total 40%+ market share & the third player
Strong Regional brands in many states trying hard to enter new markets
Tea Bags Usage
• Tea bags account for about 12 percent of the volume of world consumption & in terms of Value it is much higher
• Tea bags Very Popular in Europe, US, CIS, Middle East, Australia & Africa
• Tea bags revolutionised tea brewing, Now volumes look set to grow as tea drinkers reach for Convenience,
Innovation & flavours
Global Tea bag Consumption
UK Germany USA Russia
96% 92%
60% 56%
Tea Bag Share - India
Packet tea97.5%
Tea bags 2.5%
Tea bags Statistics
Domestic Consumption – 7000 mt/annum
Annual Growth – 18 %
Production – 16000 mt/annum
Major Thrust by the two market leaders in the tea bag segment
Tea bag Exports
Exports – 8000 mt/annum
Major exporters – HUL, JV GOKAL, Tata Madhujayanti
Major Exports Market – Australia, CIS
Leading Tea bag Brands
Major brands – Tetley, Taj Mahal, Tata, Twinings, Nestea, Duncan
Regional players like Girnar, Waghbakri, Jivraj,
Jay, Society already active in the tea bag segment
North & West India Consumption is 70% of the tea bags Produce
Value Added Tea bags
• Flavoured teabags showing 30% growth annum
• Flavoured teabag annual consumption – 700 mt
• Popular flavours - ginger, cardamom, lemon, Earl grey, and Tulsi
RETAIL CONSUMER PRICE (200 gm pack in Rs)
Taj Mahal TETLEY NESTEA
103
96
90
CONSUMER DRIVERS
• Wellness and convenience - These continue to play major roles for modern consumers. Consumers are now well aware for instance of the apparent health benefits of black & green teas. Pharma companies entering
• New flavours and functionalities - Today’s consumers want new flavours, functionality, interesting ingredients, and practical packaging that can be taken anywhere
• Convenience and portability - This shift is having a notable effect on tea bags with more intensely-flavoured blends and packaging solutions
Forecast on Tea bags
• ICRA Management Consulting Services Forecast puts existing market size at 7000 tons/annum (2009)
• Their Forecast is bullish on teabags - sales to rise to as high as 15,400 tonne by 2012-13
Tea bag Trends
• Private labels to take a boost with Modern trade format to grow from 150000 Cr in 2010 to 350000 Cr by 2013. In 2018 Forecast is 815000 Cr.
• Packaging Innovations on their way. Shift from 2 gm to 1.8 gm. Newer formats
• Companies now focusing on new products in the flavored tea, green tea, specialty tea and herbal infusion sectors
Appreciate Your Cooperation!
SACHEN VERMA